Banking System

Commercial bank

Comemercial bank is the most economic contribution. It is owned privately and profitt making.

the main function of commercial bank is:

1) Accepts Deposits

• Saving deposits
• Current deposits
• Fixed deposits

2) Gives loan

• direct loan
• overdraft
• discount bills of exchange

Commercial bank invest in buying shares

Central bank

- Issued coins and notes

- advises goverment in financial manner

- keep reserve for commercial banks

- act as clearing house for the commercial bank

- safeguard for external value of RM

-manage goverment borrowing

-keep goverment account

Other bank

- Saving Bank

- Agricultural bank

- Industrial bank

- Merchant bank